Bidding lower on an oieo house

Stixalot

Hi all i was just wondering if i can get some advice from more experienced heads, I'm a first time buyer and currently scouting out houses up to a value of 425k as my absolute maximum. However pickings are quite slim in my area around this price point and most decent 4 bed houses which would suit my family ideally all seem to have tags of 450k oieo, when it comes to these houses is this oieo a sticking point with homeowner or something that the estate agent recommends that they do? its just I don't want to try a lucky bid on a property as i feel it doesnt meet the valuation listed and be laughed out of the office! any advice and experience on this situation would be very welcome.

Penguin_

You can only offer what you can afford. If the property has been on a while, you might get lucky & have it accepted. The worst they can say is no. Shy kids don't get sweets.

babyblade41

I never see the point of OIEO, it puts people off.  Just make a sensible offer of what you think it's worth.

It's a marketing tool  EA's use , but IMO helps no one 

andy444

EA's usually just put OIEO just to encourage people to bid over that asking price.

You can bid whatever you want; it's up to the vendor whether they accept it or not.

verytired11

It's irrelevant, just offer what you can afford.  Either your bid will be competitive compared to other bids, or it won't.

Countrysider

Stixalot said:

its just I don't want to try a lucky bid on a property as i feel it doesnt meet the valuation listed and be laughed out of the office! 

I very much doubt an offer of £425K on an OIEO £450K property will have you 'laughed out of the office'. It seems a fair offer if the property is sticking on the market, especially considering it was probably priced in the drunk days during the stamp duty holiday. 

Stixalot

thanks for the advice and backing up what i was thinking myself in regards to just bidding, i think im just a bit sensitive as ive never done this before and the fear of offending with a lower bid was nagging at me

theartfullodger

Over twenty years ago I formally offered more than 10% off an OIEO property.  Got the bluntest, rudest rejection (on behalf of vendor) from agent (never been so insulted, disgraceful etc etc).  I thanked them calmly & politely for the feedback.

Made exact same offer again a week later.  Accepted.  Sold it 2000.   Through self-same agent.

Offer what you wish to spend.  Offering over that amount is unwise IMHO, to your own self-view.

FaceHead

Penguin_ said:

You can only offer what you can afford.

Yes, you should only offer what you can afford. 

However, OP,  never tell the vendor or their agent that. Saying 'I really like your house, but I can only afford 425' makes the vendor say 'thanks, I'll wait for someone who can afford 450 to come along'. 

Saying 'I like your house, but it's only worth 425 to me' makes the vendor think 'if that's what this guy thinks it's worth, perhaps I should to take it'.  

Go look at it, keep your cards close to your chest about you budget, or potentially intimate that you could go to 450, and then (if you like it) make the 425 offer claiming that's what you see the value as. Potentially start even lower so you have somewhere to go, or say you want to get a move on so this is your best offer straight away.

Stixalot

Thanks for the comments everyone lower bid has gone in, now we wait...

peterhjohnson

Stixalot said:

Thanks for the comments everyone lower bid has gone in, now we wait...

Excellent! You may get laughed at but after a delay, you may also get the house at a price you are happy with. I did :-)